July 30, 2021

REE will invest 7,000 million in the transport network from 2020 to 2025

REE will invest 7,000 million in the transport network from 2020 to 2025

Red Eléctrica de España (REE) will devote 7,000 million euros in the 2020-2025 regulatory period to investments in the transport network to adapt the electricity system to the energy transition, which almost doubles the investment rhythms in transportation in the last years.

The president of REE, Jordi Sevilla, explained at an information breakfast at the headquarters of the business group in Madrid that the transport network will have to resize its connection and discharge points, as well as to close or adapt some, with the incorporation of more renewable energies and the replacement of traditional energy sources.

He pointed out that REE is concerned about the deadlines for executing the investments, since the delays in the implementation of a Law on Climate Change and Energy Transition will force a lot to happen in the coming years.

For this reason, REE has proposed that the terms for obtaining permits for the works be reduced by half, a process that usually takes between two and three years, and has asked the Ministry for Ecological Transition for an extraordinary procedure, shortening these deadlines for the investments linked to the energy transition.

Sevilla recalled that, in the past, Spain did the same with telecommunications, which have shorter deadlines in permits to run infrastructure, and has said that the Ministry already has a proposal to anticipate the planning.

Jordi Sevilla has stressed that the priority of REE now is to obtain in the markets those 7,000 million euros, and has indicated that it will not be easy to achieve, despite the fact that the company has a lower leverage than the industry average and "defensible in the current context ".

Regarding the impact on consumers of these investments through tolls, Seville has said that it has not made a calculation, but anyway within the electricity costs 50% corresponds to the activities of private generation and distribution, and only between 4% and 4.5% to REE, so "the problem of the rate is not in REE".

He pointed out that the incorporation of more renewables is not the most expensive electricity bill, but the evolution of the price in the marginal market, so he is in favor of solving the problem where it exists, with actions on the market.

Seville, which has said that REE will review its strategic plan, has indicated that the proposal for compensation of the National Commission of Markets and Competition (CNMC) for the networks in the next regulatory period, of 5.47%, seems to be a little, and REE has asked in its claims that it be between 6.2% and 6.4%.

On the other hand, has indicated that, although the priority of REE will be to invest in transport networks, that does not mean that it is the only thing that will be dedicated to the company, and that going to other countries "is not something outlandish ", but it will not be done" at any cost ".

As for the work interconnection with France by the Bay of Biscay, Seville has said that "France does not just put all the interest" and next week will have a meeting with its ambassador, Yves Saint-Geours, which will claim "something more push ".

Regarding the proposal of Podemos to nationalize REE, Seville has said that for this they would have to have 8,000 million euros and a sufficient parliamentary majority that they do not have, so they do not see it possible to get ahead "one of the biggest mistakes that they could commit. "

Asked about the separation of transport and electric operation activities that now joins REE, Seville has said that it is something that is not on the political table and that is not the time to raise that until the energy transition is over.


Source link